# A bill is drawn for ₹ 7,000 on 3rd May for 3 months and is discounted on 25th May at 5.5%. Find the present worth. - Mathematics and Statistics

Sum

A bill is drawn for ₹ 7,000 on 3rd May for 3 months and is discounted on 25th May at 5.5%. Find the present worth.

#### Solution

Sum due (S.D.) = ₹ 7,000

Period = 3 months

Date of bill drawn = 3rd May

Nominal due date = 3rd August

Legal due date = 6th August

Date of bill discounting = 25th May

Number of days from bill discounting date to legal due date

 May June July August Total 6 30 31 6 73 days

∴ True discount (T.D.) =("P.W." xx "n" xx "r")/100

= ("P.W." xx 73/365 xx 5.5)/100

∴ T.D. = (1.1  "P.W.")/100        ...(i)

Also, S.D. = P.W. + T.D.

∴ 7,000 = "P.W." + (1.1  "P.W.")/100    .…[From (i)]

∴ 7,000 = (100  "P.W" + 1.1  "P.W.")/100

∴ 7,000 x 100 = 101.1  P.W.

∴ P.W. = (7,00,000)/101.1

∴ P.W. = 6923.83 ≅ ₹ 6,923

∴ Present worth of bill drawn for ₹ 7,000 is
₹ 6,923.

Concept: Discount
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#### APPEARS IN

Balbharati Mathematics and Statistics 2 (Commerce) 12th Standard HSC Maharashtra State Board
Chapter 1 Commission, Brokerage and Discount
Miscellaneous Exercise 1 | Q 4.09 | Page 13